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New PPP Forgiveness Guidance And Forms | Cozen O'Connor


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On January 19, SBA issued an interim final rule governing forgiveness of Paycheck Protection Program loans and also issued new versions of the three forgiveness application forms, including a streamlined form for loans up to $150,000. The changes apply to the many original PPP loans that have not yet filed for forgiveness, as well as the new first draw and second draw PPP loans created by the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (the Economic Aid Act) that became effective on December 27, 2020.
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The forgiveness rule incorporates and restates seven prior rules on forgiveness. The forgiveness rule is to be interpreted consistently with SBA’s previously issued FAQs, except as superseded by the Economic Aid Act, and with the first draw and second draw rules. ....

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The "New and Improved" Paycheck Protection Program | Cozen O'Connor


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The omnibus budget act signed by President Trump on December 27 reinstitutes the Paycheck Protection Program, with significant changes. The act allows new borrowers to receive PPP loans and some existing borrowers to receive additional PPP funding. It also restores the tax deduction for expenses paid with PPP loan proceeds, makes a number of changes in PPP and other SBA programs, and creates a new grant program for performance venues and businesses.
The new act extends the effectiveness of the original Paycheck Protection Program (now referred to as the “first draw”), creates a new program (the “second draw”) for previous PPP borrowers who have used or will have used by the time of second draw loan disbursement their previous loans and meet new eligibility requirements, and permits some original PPP borrowers to receive an addition to their original PPP loan. In general, the amendments will be effective a ....

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